According to a paper released earlier this week, trading stocks and bonds on blockchains at scale will remain a pipe dream until a worldwide standard for cross-border activity is adopted that allows assets to flow effortlessly between blockchains.
The underlying assets, or so-called tokenized assets, are traded using distributed ledger technologies (DLT), which are also utilised for cryptocurrencies. In an effort to improve trade speed, reduce costs, and increase transparency, banks are hoping tokenized asset trading takes off.
However, the easy transfer of assets between various blockchains is being impeded by a dearth of globally unified laws. At a gathering this week in Amsterdam, business leaders stated that the tokenization of assets is still in its early stages of development and is not yet widely used.
According to Georgios Vlachos, co-founder of blockchain interoperability company Axelar, which co-authored the research, client and compliance requirements vary too much globally for a single, set solution to satisfy everyone's demands.
"At the current state of things, different regulatory jurisdictions are progressing at different pace and have different focus areas," Vlachos stated.
The Axelar Foundation and digital assets risk assessment company Metrika wrote the paper on blockchain-based trade, with assistance from Northern Trust, Citi, Deutsche Bank, Mastercard, and Mastercard.
In order to encourage adoption, industry-accepted methods for risk assessments are crucial, according to Deutsche Bank's analysis.
The second-largest cryptocurrency in the world, Ether, was expected to rise for the first time in over two years on Tuesday due to optimism.
But according to Boon Hiong Chan, head of Deutsche Bank's Securities & Technology Advocacy for Asia Pacific, "standards developed too prematurely can deprive the industry of better developed solutions or become irrelevant."
Of the $13 trillion in assets it has in custody, Northern Trust projects that its digital assets market will reach a size of five to ten percent by 2030.
According to statistics from 21.co, which opens a new tab dashboard on Dune Analytics, over $85.12 billion worth of assets, including government securities, fiat-back stablecoins, and commodities, are currently tokenized.
(Source:www.theprint.in)
The underlying assets, or so-called tokenized assets, are traded using distributed ledger technologies (DLT), which are also utilised for cryptocurrencies. In an effort to improve trade speed, reduce costs, and increase transparency, banks are hoping tokenized asset trading takes off.
However, the easy transfer of assets between various blockchains is being impeded by a dearth of globally unified laws. At a gathering this week in Amsterdam, business leaders stated that the tokenization of assets is still in its early stages of development and is not yet widely used.
According to Georgios Vlachos, co-founder of blockchain interoperability company Axelar, which co-authored the research, client and compliance requirements vary too much globally for a single, set solution to satisfy everyone's demands.
"At the current state of things, different regulatory jurisdictions are progressing at different pace and have different focus areas," Vlachos stated.
The Axelar Foundation and digital assets risk assessment company Metrika wrote the paper on blockchain-based trade, with assistance from Northern Trust, Citi, Deutsche Bank, Mastercard, and Mastercard.
In order to encourage adoption, industry-accepted methods for risk assessments are crucial, according to Deutsche Bank's analysis.
The second-largest cryptocurrency in the world, Ether, was expected to rise for the first time in over two years on Tuesday due to optimism.
But according to Boon Hiong Chan, head of Deutsche Bank's Securities & Technology Advocacy for Asia Pacific, "standards developed too prematurely can deprive the industry of better developed solutions or become irrelevant."
Of the $13 trillion in assets it has in custody, Northern Trust projects that its digital assets market will reach a size of five to ten percent by 2030.
According to statistics from 21.co, which opens a new tab dashboard on Dune Analytics, over $85.12 billion worth of assets, including government securities, fiat-back stablecoins, and commodities, are currently tokenized.
(Source:www.theprint.in)